During the pandemic, when Americans stopped driving as much, auto insurance companies kicked back about 15 percent of premiums. Those breaks on auto insurance rates might be coming your way once again. Here are some reasons why.
California Makes a Move
Auto insurance rates are regulated at the state level, and California just became the first state to demand additional rebates for drivers. The California Insurance Commissioner ruled that the rebates given from March to September of last year should’ve been double what they were. Now auto insurance companies have until April 30 to issue the additional rebates to California consumers. A state as large as California ruling in favor of additional rebates means it’s likely more states will follow. After all, the pandemic affected every state (and the entire world).
Lawsuits are Coming
As Money notes, another key in triggering additional insurance rebates is class-action lawsuits. A Las Vegas-based law firm recently filed 10 class-action lawsuits against auto insurance companies. The firm claims insurance companies overcharged consumers and failed to issue fair rebates. Lawsuits are costly for insurance companies, and there’s a good chance more will be filed. Auto insurance companies might choose to just get ahead of things and issue rebates instead of dealing with lawsuits.
Calls are Going In
If you want a bigger discount from your auto insurance company, pick up the phone and call your state regulator’s office. Ask them to revisit the situation to make sure the discounts given to consumers were fair. You should also call your agent and make sure they’re using your current mileage estimate to keep your premiums low.